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A small online bookstore from 1994
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To distribute $136 Billion revenue worth of retail products every year, Amazon has developed top level quality expertise and infrastructure for its logistics. Large warehouse distribution hubs, robotics, freight carriers and software. It has opened its once internal distribution process to the market and is now successfully competing with market leaders like UPS and DHL.
‘Alexa, add laundry detergent to my shopping list’
Back on the streets of Seattle. Walking by Pike’s Market I notice a big display by Amazon, promoting Alexa. This always-connected-virtual-assistant and music player is hugely successful (in the US) and has bypassed the ‘traditional’ consumer artificial intelligence leaders Apple’s Siri and Google’s Now. How on earth could Apple have missed this by the way? They have been providing virtual assistant Siri for years and all the hardware, software and design capabilities, plus a pile of cash. Yet Amazon came out of nowhere and is the best sold virtual assistant currently, including fully integrated Amazon Music services (directly competing with iTunes and Spotify) and retail shopping capabilities. ‘Alexa, re-order two packets of Granola bars and a new Apple iPhone power cord’. Amazon Fulfillment will have it with you the same day, or even - just launched in Milwaukee for instance - within two hours for free, or one hour with a small fee added, as they partner with local super markets.
A Betá Shop - Amazon Go
7th Avenue is dominated by a tall blue skyscraper; the first tower of Amazon’s Headquarters. Another tower is on the next block and a third one is being built as we speak. Together they form the Amazon Campus Triangle, housing 25,000 Amazon workers in the heart of downtown. Including by the way 3 domes, the 'Spheres', where Amazon will experiment with employee productivity when working in an environment full of plants and sunlight.
Street level of Tower 1, is the location of the new retail concept Amazon Go. The shop is in 'beta' as it says on the sign.  |
The concept of offering concepts in beta is not to be underestimated by the way. In todays agile and rapidly digitizing world, we have no time to complete every aspect of systems, services and products. And shops. Beta is an agreement with customers that the offer is not yet perfect, but offers enough value to already make it available. The offer will attract your early adopters. Waiting until you have perfected your offer, means that a competitor will have it launched in beta and grabs the market share. And… once you have your product launched, the market has changed. The competitor who brought a minimum viable product to market - and was transparent in doing so - was able to adapt features, pricing, processes, marketing to ensure the best fit for the market at that moment. The Amazon Go grocery store makes the long future dream of retail - ‘Grab-and-Go’ - a reality. To enter the store, the Amazon Go app needs to be downloaded and active on your smartphone as means of identification at the automated entrance gates. From then on computer vision, sensor fusion and deep learning automatically keep track of every item you grab from or return on the shelves, and keeps track of them in your virtual cart. When you walk out, Amazon charges your account and sends a receipt to your Amazon Go app.
One seamless omni-channel experience
With this, Amazon is once more blending in virtual and
reality, online and offline, clicks and bricks. All in one seamless experience where ordering can start at home by voice, asking Alexa, in the app on phone or website on laptop, and when you forgot something or happen to be walking by, you just grab your bottle of fruit juice in the Amazon Go store. No need for any manual administration, no need to pin money, no need to wait in any line. Ultimate convenience and omni-channel experience.
Starbucks Cold Brew
As I got so carried away by this amazing culture of innovation of Amazon, I hardly left words for Starbucks. Yet this brand is worth a full blog post as well and is a perfect example of retail innovation. Where Amazon started online and adds brick and mortar, Starbucks started with traditional shops and now has extended that experience to digital.
But also innovation of a product that we thought was extended to its fullest already: coffee. 
The Seattle flagship location offers coffee from tab: Starbucks Cold Brew. I tried the Nitro Cold Brew and saw it actually being tapped, just like beer. Cold and nitro injected coffee. A whole new drinking experience I have to say. Although I am unsure how often I would trie it, I noticed quite a lot of people
ordering it. Together with the free wifi, the power outlets for your devices, nice music and people working and meeting there, the Starbucks experience is transformed into an almost a pub-like environment of meeting, working and fun.
Time to move on
Let’s end with my favorite Steve Jobs quote, that I think is the key to keep on allowing yourself to think innovative:Stay hungry - Stay foolish
